THE CASE OF BROKEN FRIENDSHIP,
OR THE TORTIOUS LIABILITY OF A DIRECTOR
TOWARDS A COMPANY’S CONTRACT PARTY
(Contex Drouzhba Ltd. v. Wiseman & Anor [2006] EWHC
2708 (QB) (3 November 2006);
[2007] EWCA Civ 1201 (20 November 2007))

S.L. BUDYLIN,
Legal Advisor, Bartolius Law Office

DOI: 10.24031/1992-2043-2020-20-1-223-235

Is company’s director personally liable to a party of a company’s contract in case of
a breach of the contract by the company? Generally he is not, but there are exceptions.
One of such exceptions, known to English law, is the case where the director on behalf
of the company knowingly accepts unfeasible contractual obligations. This is regarded
as fraud for which both the company and the director personally are liable. The article
considers an English case related to the topic.


Keywords: contractual liability; tortious liability; company director’s liability.

References

Будылин С.Л. Дело об угнетенных куроловах, или Ответственность директо-
ра перед контрагентами компании [Budylin S.L. The Case of Oppressed Chicken
Catchers, or the Responsibility of the Director to the Counterparties of the Company]
(in Russian) // Bulletin of Economic Justice of the Russian Federation. 2020
(getting ready for print).
Будылин С.Л. Заверения и гарантии. Компаративное исследование [Budylin
S.L. Representations and Warranties. Comparative Study] (in Russian). Moscow:
Infotropic Media, 2017.

Information about the author

Budylin S.L. (Moscow, Russia) – Legal Advisor, Bartolius Law Office (36 Stremyanniy
Lane, Moscow, 115054, Russia; e-mail: sergey.budylin@bartolius.com).

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